INVESTMENT GROUP SHOPPING AROUND

William GruberCHICAGO TRIBUNE

An investor group that created and sold a banking chain in the 1980s is on the prowl again.

In November, the investors bought Manufacturers Bank, a landmark institution at 1200 N. Ashland Ave. They recently submitted a bid to buy a controlling interest in Lakeside Bank from R.R. Donnelley & Sons, but were beaten out by another group consisting mostly of the downtown bank's insiders.

"We would love to get another deal together this year if we can," says Alfred Feiger, former president of Affiliated Banc Group Inc., which was sold to a Detroit banking firm now known as Comerica Inc. in 1987.

"As of right now, we're nowhere close to anything," he adds. "But we're always looking for acquisitions."

The group, which includes several retired bank executives, kept control of a small bank in Coal City, Ill., when it sold the Affiliated banks. A holding company called Coal City Corp. was formed to buy Manufacturers.

Feiger says the new owners have been making "subtle changes" at the bank, while being careful not to upset its longtime customers. It has extended banking hours, he says, and is now open on Saturdays. The bank also has embarked "on an active CRA (Community Reinvestment Act) program," he adds.

Has anyone seen this man?

The man who wasn't there was the subject of much discussion at the annual stockholders meeting of Hartmarx Corp. the other day.

"Have you met Mr. Bakhsh?" John Meinert, a former chairman of the clothing maker, asked its present chairman and chief executive officer, Elbert O. Hand.

"No, sir, I have not," Hand replied.

They were speaking of Abdullah Taha Bakhsh, a Saudi Arabian investor who became the biggest stockholder of Hartmarx in December. That development followed negotiations that started last summer between the company; First Boston Corp., its investment bankers; and Morton Grove-based Dearborn Financial Corp., which represented Bakhsh.

His offshore investment company, Traco International N.V., infused $30 million of much-needed capital into Hartmarx by purchasing common stock and warrants that gave Traco a 22 percent stake in the firm.

"Mr. Stein has been quoted as saying he'd like to meet him," Meinert said of Carey M. Stein, the general counsel and corporate secretary of Hartmarx who recently was promoted to the additional posts of executive vice president and chief administrative officer. Stein admitted he still hasn't had the opportunity to meet Bakhsh.

Meinert then noted that two new directors, Talat Othman and Charles K. Olson, represent Bakhsh on the Hartmarx board. They are president and executive vice president, respectively, of Dearborn Financial.

"I want to know if they only represent him or the rest of us stockholders," said Meinert. Othman and Olson didn't respond.

"It's my personal view they were instrumental in keeping us out of bankruptcy," said Stein. "So they represent all of us."

After the meeting, however, Othman told Meinert that the Bakhsh group's position "is that we represent all stockholders. We think the company has a bright future."

The Hartmarx proxy statement gives no information about Bakhsh's other activities. Olson says he is a "semiretired businessman" in his 50s who received a master's degree from the University of Southern California. The name "Traco" stands for trading and construction. Bakhsh also bought 49 percent of a commodity futures trading firm last December. The 51 percent owner is Jack Sandner, chairman of the Chicago Mercantile Exchange.

A footnote: The proxy statement discloses that another 190,476 shares are held by Taiba Corp., which is "wholly owned by a Mr. Abdel Mohsen Y Abu Shukhaiden." He was not identified further. Bakhsh, it says, has "shared power" with him to vote Taiba's shares.

BUSINESS BEAT: A group called Beyond Beef plans a demonstration Saturday at the McDonald's restaurant at 600 N. Clark St. to protest the fast-food chain's heavy use of beef. It says similar demonstrations will be held at more than 3,000 McDonald's restaurants.

- Michael S. Reeves, executive VP of Peoples Gas Light & Coke Co., was elected chairman of the Better Business Bureau of Chicago and Northern Illinois....John L. Montgomery joined Grant Thornton as a partner and national director of management consulting after 20 years with KPMG Peat Marwick....Leonard C. Donohoe, senior VP and general counsel of Chicago Title & Trust Co., retired after 40 years with the company.